BH-T1062 – Support for Economic Diversification in The Bahamas (US$50,000 Compete Caribbean contribution – IDB US$450,000 additional contribution) (2018-2023)

Counterpart: Ministry of Finance

Objective: To support the Government of Bahamas (GoB) diversification efforts by carrying out in-depth analyses of three potential sectors: (i) digital technology and ICT; (ii) “blue economy” products; and (iii) “boutique” agribusiness products. These areas were pre-identified as areas of interest that could provide (i) high-value opportunities to diversify away from traditional exports; (ii) export-oriented activities (both goods and services); (iii) feasible opportunities that build on current capabilities; and (iv) activities driven by the private sector but that would benefit from coordinated support from Government.

Results: The project produced a diagnostic and assessment for the digital economy, for the blue economy, and for boutique agriculture in The Bahamas. The project also worked with Stanford University to produce baseline indicators that would measure the coastal risk reduction services provided by mangrove, coastal forest, seagrass and coral reef ecosystems in Marine Protected Areas (MPAs), and the contribution of mangrove and seagrass ecosystems to spiny lobster nursery habitats. This allowed a calculation of impact of legislative reforms designed to expand the area under MPA management by calculating: the loss of annual income avoided by inhabitants of areas influenced by MPAs through the protection that they offer from coastal hazards, and the annual contribution of nursery habitats in MPAs to spiny lobster catch. The project also assessed the regulatory and management aspects to designate Marine Protected Areas, developed management plans for such areas, disseminated some of the knowledge products produced (for example the Action Plan for Blue Economy and Ecosystem Indicators for MPAs), and designed a monitoring and evaluation platform to inform decision-making for Blue Economy businesses supported by the Bahamas Access Accelerator.

The products related to ecosystem services produced by MPAs and their management were crucial in preparing the policy-based loan series on the Blue Economy in The Bahamas (BH-L1050 – Boosting Resilient and Inclusive Growth in The Bahamas (US$200 million), BH-L1052 – Boosting Resilient and Inclusive Growth in The Bahamas II (US$140 million), and BH-U0001 – Policy Based Guarantee Building a Social and Inclusive Blue Economy in The Bahamas (US$200 million)).

BH-T1075 – Supporting a Comprehensive Renewable Energy Program and Institutional Reform in The Bahamas (US$250,000, with IDB contributing an additional US$500,000) (2019-2023)

Counterpart: Bahamas Power and Light Company (BPL)

Objective: To support The Bahamas in its drive to transform the energy sector, supporting a comprehensive renewable energy program and institutional reform to enable cheaper, more sustainable electricity. The objective of this TC is to support the preparation of feasibility studies needed to boost renewable energy in The Bahamas and increase the security and reliability of the network, including its climate resilience.

Results: The project supported the Utilities Regulation and Competition Authority (URCA) to prepare the “Cost-Effectiveness Tariff Policy for Renewable Energy Self-Generation Projects”, RESG and SSRG and to consult with interested stakeholders on the proposed revised Economic Cost-Based Tariff or Levelized Cost of Energy (LCOE) methodology and policy for Renewable Energy Self-Generation (RESG) projects advanced by the Government and small-scale business or commercial enterprises. The project also financed a “Prefeasibility Study for Microgrids on the Family Islands of The Bahamas” which assessed the regulatory framework governing the renewable energy penetration by 2030 in the country, to replace expensive generation from fossil fuels and reduce dependency on fuel imports. According to the Bahamas National Energy Policy 2013-2033, the target is to achieve 30% of electricity generation from renewable sources of the total generation portfolio by 2030. Given that the renewable share was less than 1% of the overall generation in 2019, an ambitious and fast track program, accompanied by an adaptative regulatory framework, is required to reach the 30% target. It also supported “Technical Studies for the Development of Solar Photovoltaic Systems in New Providence” which outlined the need of having a comprehensive regulatory framework for distributed and utility-scale renewable energy that contributes to achieving the 30% target. With all these actions, the operation supported a policy/framework under consideration by the regulator for the integration of renewable energy. A series of technical-financial models for a series of solar projects in New Providence (two public high schools and the Princess Margaret Hospital) and in the Family Islands, notably in the areas of Marsh Harbor, Coopers Town, Treasure Cay, and Abaco Cays were also developed. Twenty-two Bahamas Power and Light Company (BPL) Family Islands Power Systems were assessed to identify the most economical and pragmatic approach to integrate solar photovoltaics and Battery Energy Storage Systems (BESS) into BPL’s operations in the near term. This project also supported the approval of BH-L1048 by delivering a “Strategic Environmental and Social Assessment and Environmental and Social Management Framework” to be utilized during the implementation of the loan. The project provided advice for the definition and structure of the Renewable Energy Entity (REE) in The Bahamas and the development of an interim structure for management of Renewable Energy assets.

RG-T3677 – Design and Implementation of a Regional Ag-Tech Pilot Project for the Caribbean (US$20,367 disbursed for The Bahamas) (2020-2023)

Counterparts in The Bahamas: Swapacrop

Objective: To improve the capacity of public and private sector actors to collaborate in the design and implementation of commercial Ag-Tech solutions (viable technologies and the associated business models) for contributing to the improvement of agriculture sector productivity in the Caribbean.

Results: The project completed a gender-sensitive ag-tech maturity assessment to gather evidence of the types of ag-tech solutions that are sustainable and valued by farmers, agro-processors and other stakeholders in the Caribbean. The report took a deep dive into three key value chains: Fruits and Vegetables, Sauces and Spices and Coffee and Cocoa. The report then assesses sector strategies within Jamaica, Grenada and Guyana while providing an Ag-tech adoption factor assessment with recommendations to foster Ag-tech adoption.

A Regional Ag-Tech challenge was designed and implemented. There were 7 online training sessions held for challenge participants on: Design Thinking, Business Model Canvas, Problem-solution fit, Solution-market fit, Pilot definition, Proposal presentation, Developing a pilot with Agile methodologies. A Scale Up Methodology Training was hosted for the Ag-Tech Challenge Winners. A workshop geared at regional stakeholders to build capacity for the development of future challenges was also hosted. The learning involved the transfer of the lessons learned during the Ag-Tech challenge for similar future projects, including the program scope, challenge definition, participation encouragement, incentive design, participant selection, and participant mentoring. Overall, 11 webinars were delivered, 361 private sector individuals were trained, and 6 pilot interventions were implemented.

In The Bahamas, this project provided technical assistance to Swapacrop to develop its ag-tech solutions.

SWAPACROP is an online platform established to enable the purchase of products from farmers/ farmers markets vendors directly by the consumer eliminating middlemen. Consumers today are willing to pay more for products that come from local farms or producers, especially if they are centered on initiatives such as fresh and farm to table, organic farming, ethical labor practices, etc. Farmers’ markets have long operated in this niche, however, a farmers’ market is not accessible to many individuals.

SWAPACROP’S approach leverages the disruptive power of blockchains to create a decentralized marketplace allowing consumers to buy directly from farmers using a PHYUD token. This platform has given small farmers the opportunity to get better prices due to their integration into the world economy, bypassing middlemen and giving them access to a bigger customer base.  Payments can also be made through the app via credit card. Orders are delivered to customers on pre-arranged dates by the farmers.

The key benefits realized with the SWAPACROP platform are given below:

• Reduced waste during packing and transport: A significant amount of food is wasted during transit. With SWAPACROP food exchanges hands directly between farmers and consumers, minimizing this waste.
• Improved the purchase and distribution process of farmers market items:
  Customers do not have to leave their homes to make a purchase. Once an order is made the customer will receive updates on the status of the order until delivery.
• Increased Market Access: With the help of an online presence, smallholder farmers can now sell their products to a larger market.

RG-T3792 – Capacity Building of the Caribbean Tourism Organization (CTO) to implement community-based tourism (CBT) clusters and stimulate innovation in the new normal (US$1,000,000 of which US$300,000 was earmarked for The Bahamas) (2021-2024)

Executing Agency: Caribbean Tourism Organization

Counterpart in The Bahamas: Ministry of Tourism and Aviation

Objective: To enhance the capacity of the Caribbean Tourism Organization (CTO) to support Community-Based Tourism (CBT) clusters in the region. This was the third phase of regional capacity-building effort launched by Compete Caribbean in 2017 to institutionalize the cluster methodology in the region.

Participation of The Bahamas: The Andros CBT Collective

The largest and least developed of all the islands in The Bahamas, Andros is rich in biodiversity with over 200 species of migrating, regional and endemic birds; unique wildlife; vast mangrove, hidden beaches and wetlands. Andros has a high concentration of blue holes; the world’s longest underwater cave system; the hemisphere’s second largest barrier reef; and the largest protected land and sea national park system in the Western Atlantic Caribbean.  It is aptly recognised as Bahamas’ Eco-Capital and called the Blue Hole and Bonefish Capital of the World.

Despite its vast natural resources, pristine coastal and marine ecosystem and unique historical legacy, Andros has a depressed economy with high levels of unemployment among its 7,490 inhabitants and increasing emigration to the capital. Exports from farming and fishing, the two traditional means of livelihood on the island, are insignificant and the only other means for sustained living i.e., tourism, underperforms and has not yet lived up to its potential to effectively support livelihood and conservation on the island.

Results:  In this context, The Bahamas Ministry of Tourism partnered with a cluster of 56 core firms and entrepreneurs from a cross sector of economic activities in Andros’ four districts to support community-based tourism, and drive livelihood opportunities for women and youths as tourism entrepreneurs, while ensuring local traditions and the island’s natural resources are sustained. The project identified three critical areas for intervention: Product Development and Digital Marketing; Capacity Development and Training; and Cluster Formation and Management to ensure the Cluster’s success and sustainability.

With the project’s support along with interventions by the Bahamas Ministry of Tourism and the Bahamas Agriculture and Marine Sciences Institute (BAMSI), a national flat fishing tour guide certification program was enhanced and three (3) cohorts of thirty-two (32) new guides trained over the duration of the project. This was a significant achievement given the cited challenges of ageing guides and the risk of non-continuity of this important, high-earning adventure tourism mainstay in Andros. The industry continues to be male dominated however, with the project’s support, scholarships encouraged female participation. BAMSI also launched the ‘Certificate in Nature’ course for nature tour guides and birding guides, which will be developed into a national certification program. The project supported the certification of new guides who could conduct tours of blue holes, trails, and share information on local flora and fauna. This certified program attracted twelve (12) persons in its first cohort, with almost 60% female participants.

In addition to the tour guide programmes, a Business Development Training Programme was delivered in-person and online to build entrepreneurial skills in Product and Partnership Development, Sales, Record Keeping and Fundraising, Business Management including Customer Service and Strategic Marketing. Digital marketing training workshops were enhanced with one-on-one coaching sessions for cluster members across all four districts. These sessions focused on establishing their digital presence by developing websites, social media channels, and logos for 80 SME cluster members. Overall, the CBT project exceeded its initial target of 20 training workshops by completing 25 workshops. A total of 123 women and 106 men were trained, surpassing the original goal set of 25 women and 35 men.

Among other notable achievements, a brand identity including a logo with accompanying collaterals were produced for the CBT Cluster and a new website developed to promote tourism to Andros – https://androsecotourismcollective.com  (with a 1 year hosting arrangement).

The project also aimed to improve the capacity and willingness of local firms, particularly those owned by women, to participate in the CBT sector. Initially, the project baseline for male-owned firms benefiting from the initiative was 19, with a target of 56 firms. By the end of the project, this target was exceeded, with 75 male-owned firms benefiting from the project. Similarly, for female-owned firms, the baseline was set at 22, with a target of 56 firms, and the project exceeded this goal as well, benefiting 75 female-owned firms.  Most importantly, a gender-inclusive cluster development plan was successfully implemented, ensuring representation across genders in all project activities. The project also resulted in consolidating the growth of the Andros Cluster from 56 members at inception, to 131 members at the end of the project in March 2024. This outcome reflects the community members’ willingness to collaborate, which was not previously the case, and resulted directly from the cluster facilitation and team building activities.

RG-T4008 – Strengthening the Implementation Capacity of Caribbean Blue Economy Clusters and Value Chains – (US$400,000 earmarked for C-Coral) (2022-ongoing)

Overall Objective: This regional project provides implementation support to 3 Caribbean Blue Economy clusters that were identified and recommended for financing under a 2020 Blue Economy Cluster Call (See RG-T3815). It is also providing support to 1 additional cluster that participated in the call. In The Bahamas, the project supported the C-Coral Cluster.

Counterparts in The Bahamas: The Perry Institute for Marine Science and Coral Vita

Objectives of the C-Coral Cluster: The C-Coral Cluster was conceived to address the rapid degradation of coral reefs in The Bahamas. By uniting 25 private dive shops of which 10 were women-owned, the cluster project aimed to scale up and make coral restoration efforts more effective.

Results: One of the standout features of this initiative is the development of a new tourism niche product — Reef Restoration Tourism. This innovative concept drew from The Bahamas’ established reputation as a premier diving destination and integrates eco-tourism with marine conservation efforts. Visitors to The Bahamas can now participate in hands-on coral restoration activities while enjoying some of the best dive sites in the world, offering a unique blend of adventure and environmental stewardship.

C-Coral has achieved several major milestones since its inception:

1) Strategic Launch and Recognition: The initiative was launched at the DEMA SHOW 2022 in Miami, one of the largest events in the world for scuba diving and adventure tourism industries. This strategic launch was instrumental in raising awareness and building momentum for Reef Restoration Tourism.

2) Coral Vita’s Earthshot Prize: One of the cluster members, Coral Vita, garnered global attention when it  won the prestigious £1 million Earthshot Prize in 2021. Coral Vita is the world’s first commercial landbased coral farming company, which has revolutionized reef restoration methods, placing The Bahamas as a hub for ocean conservancy .

3) Coral Nurseries and Outplanting Efforts: Despite challenges like coral bleaching affecting about 50% of  nurseries, the cluster has made significant progress in outplanting 101 coral fragments and installing new  coral nurseries at multiple locations. Additionally, photogrammetry and monitoring techniques have confirmed that nursery-reared corals are spawning, a promising sign for the future of reef restoration.

4) Youth Engagement and Certification Programs: the project nurtured the next generation of marine conservationists. Through the Rising Tides program, Bahamian youth have been certified as  PADI Reef Rescue Divers. This investment in youth underscores the long-term commitment to marine conservation and local engagement in environmental efforts.

5) Building a Resilient Future: The cluster’s impact extends beyond just environmental goals. By providing marketing, media event planning, and business development support, the project allowed C-Coral to ensure that the message of coral  conservation reaches global audiences. For instance, the “Coral is Calling!” campaign, launched with support from the Ministry of Tourism and major hotel chains like Atlantis Paradise Island, aims to engage both locals and tourists in marine conservation efforts. Moreover, the cluster’s collaboration with organizations like the Perry Institute for Marine Science and the Bahamas Government underscores the importance of public-private partnerships in driving conservation innovation.

The C-Coral Cluster continues to expand its coral nurseries, engage in restoration activities, and elevate the profile of The Bahamas as a model for ocean resilience. With international media trips, certifications for local youth, and a growing interest from private firms, the Reef Rescue Network is becoming a cornerstone of the blue economy in The Bahamas. The success of the C-Coral initiative demonstrates how environmental conservation can align with economic development. By turning coral restoration into a tourism attraction, The Bahamas is not only protecting its marine ecosystems but also offering visitors a chance to be part of the solution. This innovative approach can serve as a model for other regions facing environmental challenges, proving that sustainable tourism and environmental stewardship can work hand in hand.